House Bill No. [insert bill number] aims to revise property tax regulations in Montana by introducing several key changes. It allows local governments to establish a large taxpayer reserve account, requiring them to deposit 10% of revenue from newly taxable properties (excluding class four properties) into this account annually. The funds can be used to offset technology payments related to property assessments and must remain in the account until a large taxpayer ceases operations or experiences a significant decrease in taxable value. In such cases, the funds can be utilized for various purposes, including paying off capital project bonds, reducing mill levies, attracting new industries, and investing in infrastructure.

Additionally, the bill amends existing laws regarding the calculation of property tax levies. It increases the inflation limitation for governmental entities from one-half to a maximum of 4% and modifies how newly taxable property is accounted for in levy calculations. Specifically, it allows for the inclusion of a higher percentage of newly taxable value from certain property classes, depending on whether a large taxpayer reserve account is created. The bill also establishes that these changes will apply to property tax years beginning after December 31, 2025.

Statutes affected:
LC Text: 7-6-4431, 15-10-420
HB0865_1(1): 7-6-4431, 15-10-420
HB0865_1(2): 7-6-4431, 15-10-420
HB0865_1: 7-6-4431, 15-10-420